Are you somebody that wants to increase their net worth? If so then we are of the same persuasion. The pursuit for wealth starts at an early age, starting with school, learning and trying to get good grades and eventually graduate and get a job that will keep us in the manner that we are either accustomed to or aim for, and all of this is because we believe we can increase our personal assets with the more we earn.
Those that want to be super rich, could take a look at New Yorkers and how they progress through their lives. In accordance with a recent study there are a large number of millionaires in New York, so what exactly is their story? Why are they so advanced in comparison to other areas of the U.S? Could it be because they are one of the largest financial cities in the country?
Ranking 4th Are Millionaires in New York
In a recent article that was published on LATimes.com it was revealed that in every 25 New Yorkers one person is a millionaire. Taking these statistics it would be correct to make the assumption that there are on average 389,000 millionaires in New York. With figures such as these you can guarantee that just walking down a street in New York will mean that you will rub shoulders with at least one millionaire.
Wealth Insight a consulting firm recently revealed that New York ranks 4th worldwide in regards to cities with the most millionaires, and this does not include the value of the individuals home. The figure of $1 million is the combination of investments, bonds, cash and other assets, this means that there are in the region of 389,0000 millionaires in New York with far more than $1 million in value. When looking at those with properties in the city it can be assumed that there are far more people that have excess wealth in their bank accounts. The article in LA Times confirmed that not only are there a wealth of millionaires in New York but it is also where many billionaires reside.
Data that was printed by SpearsWMS.com showed that there are two other US cities in the top 20, however they are far lower in the actual rankings. In 18th is Houston and 19th San Francisco. The top ranking areas with regards to population of millionaires sees Monaco with 29.21% as the leader, followed closely by Zurich with 27.34%, then almost 10% lower is Geneva at 17.92%, then dramatically lower is New York with 4.63% and in fifth place is Frankfurt with 3.88% of the population having millionaire status.
The Spears article reported that most of these places are major financial cities within their countries or continents. With both Zurich and Geneva being Swiss banking centers and this is obviously contributory to the distribution of wealth in these cities. There are other cities not shown above that are in the list and attract wealth and tourists such as Hong Kong and London.
The Spears article also looked at the taxes, location and political regimes as these contribute to attracting millionaires to take up residence in these areas. Should one of these factors become negative the millionaires may decide to leave.
Therefore it could be that just taking into account the location could see you increase your net worth, however it takes a lot more to become a millionaire.
How To Increase Your Personal Wealth
Personal wealth is not really about the place you live but is how you use the money that you are earning, although it is not about how much you earn a month. People that are earning an income in the range of six figures may not actually be millionaires and this is due to the burden of debt that they are living with. To be able to increase your net worth and join the millionaires in New York you should follow the habits shown below:
Live Below Your Means
The only way to live below your means is to budget. This is the first place to start when growing your personal wealth. Your budget should show the income that you bring home every month and the payments that you have to make and by following this you can take control of your money. From this point you can decide on ways to cut spending and increase the financial amount that you have left at the end of each month, as the only way to increase your net worth is by increasing the amount that you can save, and this leads to greater wealth meaning that you will be richer.
Create A Financial Safety Net
The financial safety net is your savings or emergency fund. Your savings can be used to setup your finances so that they make you an extra income, and the emergency fund will always save you from any financial disaster. The emergency fund will also save you from having to borrow money if something unexpected occurs and minimizes the stress of the disaster as this can be immediately fixed.
Invest Your Money
Investing your money is one of the best ways that you can increase your net worth. Your financial safety net is where you will have the funds to invest. This will teach you how to invest to grow your personal wealth. You have a number of choices including:
- Mutual funds
- Equity funds
Any or a combination of the above is how you can grow your money without having to work too hard.
Be Debt Savvy
By increasing your wealth it doesn’t have to mean that you are debt free. The fundamental point to understand in relation to managing your credit is an understanding of exactly the amount you can afford to borrow. As published SmartAboutMoney.org, any debt that you have should fall under 20% of your monthly income, and this should encompass your credit card debt, student loans and car loans. For those needing a home loan in order to purchase their home should make sure that your other debts are controlled rigorously.
Finally make sure that you are educated when it comes to making decisions about your money. It is paramount that you are financially literate and this is one quality that all millionaires share. They are knowledgeable and au fait with all of the options to put them in a better place with regards to their finances. They are very aware of debt and the implications that it brings.
So, if you want to join the millionaires in New York these are all things that you should strive to complete. Those that are unaware of the financial management are those that end up spending their wealth unnecessarily, and any effort that you have made will be in vain.